Coeur d'Alene, ID Cap Rate 1.90%
Coeur d'Alene is the post-2020 outdoor migration darling of North Idaho — sustained in-migration from California, Spokane, and the broader Pacific Northwest has pushed pricing dramatically since 2019, with the lake-resort lifestyle providing the central demand thesis. The 1.90% cap rate at a $585,000 median price reflects the migration-driven pricing pressure. The 0.29% rent-to-price ratio sits well below the 1% rule. Population growth at 2.6%/yr remains strong, among the top in the country.
Employment is anchored by the broader Spokane WA spillover economy (Coeur d'Alene is 35 miles east of Spokane — many CDA residents commute to Spokane for healthcare, manufacturing, and federal employment, with Idaho's lower tax structure providing the move-to-CDA arbitrage), Kootenai Health (the dominant regional medical system serving North Idaho), Coeur d'Alene Resort and the broader tourism / hospitality economy tied to Lake Coeur d'Alene (the resort is among the more nationally-recognized US lake-resort destinations), Buck Knives and the broader manufacturing base, North Idaho College, the broader Kootenai County government, and a meaningful real estate brokerage and construction economy supporting continuing in-migration. The tenant base mixes Spokane commuters, retirees from California and the Pacific Northwest, remote workers, and the local resort-and-services workforce. Submarkets stratify by lake access: the downtown / Tubbs Hill area is walkable urban with strong appreciation; the broader lakefront / Sanders Beach areas are premium with very high prices; the broader Hayden / Post Falls suburbs draw professional family rentals; the broader Kootenai County extends with newer construction.
Idaho property tax at 0.64% is moderate, with a homeowner's exemption that doesn't apply to non-occupant rentals (model the non-owner-occupied basis). Idaho state income tax is a flat ~5.8%, materially lower than neighboring Washington if you count Washington's broader tax structure. Insurance is reasonable but verify wildfire / wildland-interface exposure for foothill properties — the broader North Idaho wildfire seasons (2015, 2017, 2018, 2020, 2021) have repriced insurance in some submarkets. STR regulation has been a recurring local political topic; verify ordinance status before underwriting any short-term lake-rental thesis. The structural advantages: continued California / Pacific Northwest migration has been durable; Spokane spillover provides a non-migration demand floor; Idaho's no-income-tax-on-non-residents structure has historical political durability. The structural risks: migration-narrative sensitivity (the entire pricing thesis depends on continued remote-work flexibility); wildfire exposure is real; housing supply constraints can produce sharp downside if demand softens. For long-hold appreciation investors comfortable with current pricing, Coeur d'Alene remains compelling — for cash-flow buyers, the math doesn't pencil.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Coeur d'Alene
Coeur d'Alene's 0.3% rent-to-price ratio is well below the 1% rule. At median prices of $585,000, the $1,700/mo rent produces only $927/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($117K at 7%) would result in approximately $-2,185/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 18% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Coeur d'Alene a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Deal Modeling & Scenarios for Coeur d'Alene
All figures below are computed from Coeur d'Alene's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.64% effective rate on the $585,000 median price, the annual tax bill is $3,744 — that's below national average (-40% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Coeur d'Alene continues appreciating at 2.4%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $585K | $1,700 | 1.9% |
| Year 1 | $599K | $1,751 | 1.9% |
| Year 2 | $613K | $1,804 | 1.9% |
| Year 3 | $628K | $1,858 | 1.9% |
| Year 4 | $643K | $1,913 | 1.9% |
| Year 5 | $659K | $1,971 | 2.0% |
Three Financing Scenarios
Same median-priced Coeur d'Alene property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $585K | $927 | $11,119 | 1.9% |
| 20% down conventional @ 7% | $135K | $-2,186 | $-26,227 | -19.5% |
| 25% down DSCR @ 8.5% | $170K | $-2,447 | $-29,369 | -17.3% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $439K | $1,445 | $9,274 | 2.1% | $773 |
| At median | $585K | $1,700 | $10,195 | 1.7% | $850 |
| Above median (~125% price) | $731K | $1,955 | $11,116 | 1.5% | $926 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Coeur d'Alene's historical appreciation rate of 2.4%:
On a $117K down payment, that's a -19.1% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Coeur d'Alene
Automated checks against the underlying data — surface only the risks that actually apply to Coeur d'Alene, not generic boilerplate:
Cap Rate Calculator — Coeur d'Alene
Pre-filled with Coeur d'Alene medians. Adjust to match a specific property.
Cash-on-Cash Return — Coeur d'Alene
Factor in financing to see your actual return on invested capital in Coeur d'Alene.
Is Coeur d'Alene a Good Place to Invest in Rental Property?
Coeur d'Alene, ID has a population of 50,000 and has been growing at 2.6% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $585,000 paired with median rents of $1,700/mo produces an estimated cap rate of 1.90%.
Property taxes at 0.64% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 10.1x, homes cost about 10.1 times the local median income of $58,040. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Coeur d'Alene is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.